LogFAQs > #888866252

M_Live posted...

I still to this day do not remotely understand bitcoin, what mining is, why it's so CPU intensive or who is using it for what

1. Digital currency/asset

2. Mining is solving mathematical problems to ensure that Bitcoin transactions are valid and recorded, for providing computing power/resources, you are rewarded with a value of Bitcoin

3. Because it's doing a lot of complex math for all of the Bitcoin transactions going on

4. Plenty of small business owners are using Bitcoin, and a lot of people own it as a speculative investment.

Here is what Bitcoin is: Bitcoin is basically a digital gold that has a finite amount and is decentralized. Every bitcoin is part of the digital ledger so nobody can cheat the system and create more bitcoin or fake a transaction, therefore it doesn't require a centralized authority to distribute or control the currency. As an owner of bitcoin you are essentially your own bank.

Right now if I wanted to send you money, I'd have to do a wire transfer or write you a check like it's fucking 1950 and wait 4-5 business days for the money to clear and get into your account. With bitcoin the currency works on its own and is verified within a couple of hours. Also because it's a decentralized digital currency it's not bound to government regulation or exchange laws. If I wanted to move to any fucking country in the world the only thing I'd have to do is pack up my stuff and bring my bitcoin and I'm done. No reporting my money, no paying taxes, no exchanging currencies, it's freedom.

tl;dr it's a powerful force of nature and it's here to stay. Bitcoin and Ethereum are going to change our lives and hopefully dismantle the current banking system.